Netflix´s Competitive Advantage and Strategies Essay

1705 Words 7 Pages
Video Rental and Streaming has partly been of the most significant avenues of the general home entertainment industry in the United States for many years. It promotes constructive development through various channels such as Information Technology, Public Multimedia and it also has a huge impact on people’s lives and their entertainment on demand. One of the best companies which provide this high-advanced service is Netflix, Inc (Netflix). It was incorporated on August 29th in 1997 in California by Reed Hastings & Marc Randolph; listed on NASDAQ as NFLX in 2002. Netflix is the world’s largest Internet subscription service streaming television shows and movies with over 40 million members in 40 countries (Netflix, 2013).
Netflix operates
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The reason is these contents can signify large segments of the company’s product offering. Netflix depends upon content licenses from entertainment studios since it does not actually produce any contents, and any changes in the licenses could ruin its business model (Fritz, 2009).
Netflix hinges on the attractiveness of movies and TV shows among customers in target marketplace segments. Since standard age of the people grows elder and movie as well as TV shows utilization in the middle of the older demographic turns out less popular, business strategies would be decidedly negative. Furthermore, if the online content becomes ostracized in large areas, business would be unfavorably affected as more movies are online streaming.
In order to keep up competitive advantage, it is required to cost competitively against rivalries. Netflix is operating in the industry that depends on the non-refundable earnings of consumers. Whether economic growths were stagnant, the purchasing power of customers might be negatively affected, Netflix would concern the consequences of this diminished purchasing power initially.
At aspect of technologically, as Internet based on business, Netflix is required to challenge with the relentlessly surfacing Internet, as this industry proceeds online technology consumption. While technological features inferior

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